In December 2019, as part of its efforts to examine current trends that might affect consumer reporting accuracy, the FTC co-hosted a workshop with the Consumer Financial Protection Bureau (CFPB) that examined issues affecting the accuracy of both traditional credit reports and employment and tenant background screening reports. In addition, the FTC (“Commission”) has brought several actions to enforce the FCRA.

According to the FTC report: In the last decade, the Commission has brought more than 30 actions to enforce the FCRA against consumer reporting agencies (“CRAs”), users of consumer reports, and furnishers of information to CRAs. Approximately half of those cases involve allegations related to processes for handling consumer disputes of inaccurate information or procedures for ensuring the accuracy of information in consumer reports.

The report from the FTC – which has helped implement, enforce, and interpret the FCRA – continued: With the advent in 2011 of the CFPB’s supervisory authority over the nationwide consumer reporting agencies and the coordination efforts between the federal agencies, the FTC has focused its FCRA law enforcement efforts on other entities in the credit reporting area and other aspects of the consumer reporting industry more broadly.

The report found the FTC focused on CRAs that performed background screening: As to the CRAs themselves, the FTC has settled cases against background screening CRAs that compile background reports on consumers that may include driving records, employment and education history, eviction records, criminal records, and credit history for use in making employment and housing decisions.

Enacted by Congress in 1970, the Fair Credit Reporting Act (FCRA) 15 U.S.C § 1681 is federal legislation that promotes the accuracy, fairness, and privacy of consumer information contained in the files of CRAs, and was intended to protect consumers from the willful and/or negligent inclusion of inaccurate information in their credit reports. The full text of the FCRA is available on the FTC website.